De Nederlandsche Bank (DNB) published a factsheet that provides insight into the operation and progress of the deposit guarantee scheme (DGS) payout for Amsterdam Trade Bank (ATB) in 2022. DNB is together with the deposit guarantee fund (DGF) responsible for the Dutch Deposit Guarantee.
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With the factsheet, we give insight in the DGS payout organization and the most important steps taken by DNB during the payout for ATB. You can also read how we ensure that compensation is made available within the statutory payout period. Since 1 January 2024, this period is seven working days. At the time of the last DGS payout in the Netherlands, for DSB Bank, this was still 3 months.
On Friday 22 April 2022, ATB was declared bankrupt at its own request. This was a consequence of the sanctions on Russia and Russia-affiliated individuals and entities, causing serious disruption to its operations. In consequence, DNB activated the DGS for ATB. Within 7 working days, DNB and DGF made available the DGS compensations. Account holders could login to an online web portal on the third working day after the bankruptcy. Here they could provide the contra account number to which DNB would transfer the compensation.
Within one month after the bankruptcy, 95% of the total guaranteed deposits was paid out. In the past two years, DNB reimbursed a total of € 670 million on covered deposits to account holders of ATB. There were also a number of special circumstances, such as the compensation of deposits of German (deceased) depositors and so-called ‘dormant accounts’.
From 2024, a statutory payout period of seven working days applies. This payout period has been gradually reduced from 20 working days in 2017. With the introduction and development of the DNB Single Customer View (SCV, or in Dutch ‘Individueel Klantbeeld), the transfer of bank records following a bank failure has improved significantly. The quality and timeliness of the delivery of the SCV file is crucial to make DGS compensation available within seven working days. In addition, DNB developed a DGS payout application where, after processing the SCV file, account holders could login and with which payouts can be made automatically.
The Deposit Guarantee Fund (DGF) ensures that the funding of a DGS payout is made available on time. Since 2016, banks make quarterly contributions to this fund. In the course of 2024, the fund will reach its target size of 0.8% (around € 4.8 billion) of the total covered deposits in the Netherlands. Finally, DNB ensures that the DGS payout organization is prepared as best as possible. To this end, preparedness plans are in place and we conduct crisis simulations.
With this explainer video you will learn more about the DGS payout for ATB:
Report on the DGS payout process for Amsterdam Trade Bank
Would you like to know more? Read the report on the progress of the DGS payout for ATB and get an insight into the DGS payout organization of DNB:
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